Whatever line of business you are in – online or offline – if you sell anything, you will need to know about inventory control. All companies suffer an enormous number of issues around this subject, and it can cause havoc with your end of year figures. So, today, we’re going to look at some different tips for keeping a closer eye on your inventory, and explain why it is so beneficial.
The benefits of tighter stock control
First of all, let’s find out why having a firmer grip on your inventory is so important. The nuts and bolts of it are that you have to have enough stock to satisfy your customers, but not too much that your costs start to spiral out of control. There is a fine line between too much and too little, and if you get it wrong, it can have a severe impact on your chances of growth and making a profit. Now let’s look at some of the techniques you can start to use to make things better for your business.
Use stock management companies
Stock or stores management companies can help you get to grips with your inventory for you. They are useful if you have bulk items and products that you don’t want to store yourself, or that you can’t afford to keep on site. You should get use of the company’s workforce, space, and software to track all your goods in and out. While you will pay a fee for the service, it can save you money if your inventory is unwieldy and you find it hard to control. It’s also something worth thinking about for businesses that are undergoing a period of growth. Especially those that cannot afford to expand their work and storage space.
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Checking in and out
If you want to start taking control of your stock yourself, then you need to start with your in and out processes. You should match up everything that comes through your door with what is on your invoice, and store it in a safe and categorized manner. And, when any goods leave your business – after a sale, for example – you should also make a note of where it has gone. If you are managing a large inventory, it might be worth investing in RFID technology or barcode scanners. These will help you automate your check ins and check outs, and save you an awful lot of time.
Have a minimum stock level
Some products will be more popular than others, and some products will be a perennial seller, but not in large quantities. It’s important to have minimum levels of these best sellers, to ensure you get caught with no stock of your most popular products. Don’t forget, most suppliers will have lead times, and you should bear these in mind when you set your levels. It’s also important to keep on top of your minimum orders because they will change all the time. For example, if you are a music seller, then your order levels for Christmas albums will need to go up in October/November time. Then, you can go back down again in January.
Take stock
Finally, you should also run regular stock checks – at least twice a year. This will give you an up to date account of where you stand, and help you find out if any of your stock has been stolen or misplaced. It’s a vital part of inventory control that will help you make considerable savings.
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